MTU Aero Engines - Investor and Analyst Day 2006 · MTU Aero Engines - Investor and Analyst Day...
Transcript of MTU Aero Engines - Investor and Analyst Day 2006 · MTU Aero Engines - Investor and Analyst Day...
MTU Aero Engines - Investor and Analyst Day 2006
Munich - September, 28th 2006
2
Agenda for the Day
Bernd KesslerMRO – MTU Growth Business14:20 – 14:45
Q&A14:45 - 15:00
Get Together at Oktoberfest17:00
Dr. Rainer MartensFuture Technology and R&D13:40 – 14:10
Q&A14:10 – 14:20
Reiner WinklerOverview of New Cost Efficiency Initiatives12.00 – 12.20
Q&A12.20 – 12.50
Udo StarkUpdate on Strategy and the Commercial & Military Business11.00 – 11.30
Q&A11.30 – 12.00
Lunch Break
Event
12:50 – 13:40
SpeakerTime
Update on Strategy and the Commercial & Military Business
Udo Stark, CEO
September, 28th 2006
4
Airlines Continue to Experience Positive Demand 1-7/2006Freight Traffic Recovers from 2005 Weakness
Billion RevenuePassenger Kilometers
Billion FreightTonne Kilometers
+5,3%+6,4%+7,6% +3,2%
* 2006 year-to-date shows 2006 growth for the first 7 months
+15,4% +13,9%
Source: IATA
0
1
2
3
2004 2005 2006YTD*
0
0,1
0,2
2004 2005 2006YTD*
• International traffic shows robust growth in first 7 months of 2006
• Strong passenger traffic combined with record load factors are improving airline profitability
• Robust trade and positive underlying conditions in Asia and Europe expected to further increase air freight volumes
• Risk remains that high oil prices and rising interest rates may slow down economic growth and affect traffic
5
• Fuel prices reached again record levels in July / August due to situation in Middle-East
• Decline since end of August looks sustainable
• Crude oil spot prices at $73/bbl in August (-2 % vs. July)
Jet Fuel and Crude Oil Spot Prices Highlights
Record Oil Prices Enhance Need for Fuel Efficient Engine Technology
Source: US Department of Energy, Energy Information Administration (Aug, 3rd, 2006)
Jet Fuel, Spot Cash Markets (Simple Average)Crude Oil, West Texas Intermediate
12 months to August 31st, 2006
30
40
50
60
70
80
90
100
110
01. Sep 11. Okt 18. Nov 29. Dez 09. Feb 21. Mrz 02. Mai 12. Jun 24. Jul 31. Aug
30
40
50
60
70
80
90
100
110
6
14.600
4.600
25.600
Future Market:
90+ seats
2006-2025:21.000
aircraft *
Corresponding # of New Engines:
49.000
End 2005 End 2025
# of aircraft
Within Next 20 Years 21.000 New Aircraft to Enter the Market
Current fleet
Fleet in 20 yrs.
* Airliner market (90 + seaters)
7
Key Business Issues Since H1 2006
• Ongoing strong business performance in July and August• Favourable business mix (spare parts)
• A380: First flight with GP7200 in August 2006• Engine with aircraft certification (IASA25) planned for Mid 2007• Airbus delays have limited impact on MTU (revenue shift)
• PW2000: New engine sales secured up to 2009, spare parts beyond 2030
• MRO secures US$ 300 m CF34 Air Wisconsin contract for Berlin
• Military Business: • Entry into US Military market with F414 • TP400 engine for A400M on track• Upside potential from Saudi Eurofighter order (72 A/C)
• Latest Industry Deals (Acquisition of Avio and SR Technics)• Favourable valuation for aero engine and MRO companies
8
Five MTU strategic pillars
1 Maintain leadership in technology
2 Gain access to fastest growing new engine programs
3Strengthen core business by accessing related niche businesses
4 Evaluate acquisition opportunities
5 Further improve cost competitiveness
9
1. Maintain Leadership in Technology
Emission requirementsCosts requirements
Cash Operating Costs-10 - 15 %
Noise - 20 - 25%
CO2 - 15 - 20%
NOx - 80 - 85%
Fuel burn- 15 %
Maintenance- 30 %
Manufacturing- 20 - 30 %
10
~ 1.100
~ 2.100
~2.200
3.600
~ 15.400
Market Potential # of engines
(2006-25)
Military OEM
Commercial OEM
2,55000-6000KW
n/a
2013+
Future demand for unmanned aircraft vehicle
HTH/HLR
822klb2007for MTUF414 (EIS 1996)
1510-18klb2015Replacement for RJ-engines
6075-95klb2012A350 XWB-Engine
10020-30klb2013/15Engine for A320/B737 Successor
Market Potential Engines US$ bn
(2006-25)Thrust RangeEISUpcoming Program
Opportunities
2. Gain Access to Fastest Growing New Engine Programs
11
Number of Aircraft Deliveries (2006-2025)
3.700
Turbo-prop
11.000
Very Light Jets
4.900
Light Jets
7.500
Medium Jets
4.000
Heavy Jets
800
Regional 45- 59
2.900
Regional 60-89
2.200
NB / Reg. 90-120
12.400
NB 130-220
6.300
WB & equiv.freighters
Overall Market Demand 2006-2025: 52.000 Aircraft- incl. Narrowbodies, Widebodies, Business & Regional Jets
PW600Cirrus, CAC
PW500RAC, CAC
PW300BBD,EMB,
CAC
10-14KCAC, BBD, DAS,EMB+ Reg. 50
10-14KEMB, BBD
14-20KEMB, BBD, AVIC, RRJ
Boeing?
20-35KAirbus, Boeing
50-115KAirbus, Boeing
∑ 31.000* ∑ 21.000
* Turboprop Engines not included
12
90-230 Deliveries and sales 2006-2025
20-90 seatsRJs and Bizjets
Market Demand for 90-230 Seat Aircraft Represents 40% of Total Deliveries
US$ 510 bnengine sales
114.300engines
52.000aircraft
31.100
14.600
6.300
Aircraft Deliveries
64.900
31.500
17.900
Engine Deliveries
US$ 90 bn
US$ 200 bn
US$ 220 bn
Engine Sales
230 + seats Widebodies
90-230 seatsNarrowbodies
13
Single-Aisle Deliveries 2006-2025
90-12015%
120-13527%
175-230
16%
135-175
42%
A321, 737-900A310, 757, 767-200/200ER
A318, 737-600, Emb 190/195ARJ21-90, RRJ95737-500, DC9, MD-87, 717,F100, RJ100, BAe 146-300
A319, 737-700737-300, DC9-50
A320, 737-800MD-80/90, 737-400, 727-200
The Most Relevant Single-Aisle Segment is Between 120 and 230 Seats – With 85% of Total Single-Aisle Market
14.600 A/C in total
85 %
14
3. Strengthen Core Business by Accessing Related Niche Businesses
Disassembly/Assembly
Test
PartsRepair
EngineLease
AccessoryRepair
• MTU currently focused on D/A/T and associated repairs
• Room for increased service offerings by
• Engine Lease
• 3rd party parts repair
• Accessory repair
MTU Core Business
– especially MRO Segment
15
4. Evaluate Acquisition Opportunities
• Strategic fit with MTU core business
• Financial fit
• > 14% EBITDA margins long term
• No dilution of MTU margins or EPS
M&A search criteria
• Currently well leveraged portfolio of synergetic business units
• M&A candidates to fulfil strong search criteria
MTU Portfolio
Com.OEM
Mil.OEM/MRO
Com.MRO
16
MTU Efficiency Program
Reduction of Indirect Cost
Reduction of Procurement Cost
Reduction of Direct Labour Cost
5. Further Improve Cost Competitiveness
Overview New Cost Efficiency Initiatives
Reiner Winkler, CFO
September, 28th 2006
18
Overview H1 2006 Financial Performance (1/2)
Revenues (€ m) EBITDA adj. margin
+ 9% (*)
+ 33%
+ 1%
1.026
1.149+ 12%
480 485
203 204
351468
H1 2005 H1 2006
CommercialBusiness
MilitaryBusiness
MRO
(*) underlying growth w/o ATENA, US$-Effects
+ 39%
102
140
+22%
+ 77%
€ m
75 91
30
52
12,4%11,2%
10,0%
13,2%
10,9%
8,4%
0
100
200
300
H1 2005 H1 20060,0%
5,0%
10,0%
15,0%
OEM MROMTU Group margin OEM marginMRO margin
19
Cash Flow from Operating Activities
€ m
Net Income / EPS (underlying)
- 48 %
€ m €/share
Overview H1 2006 Financial Performance (2/2)
+ 216%
18
55
1,0
0,3
0
10
20
30
40
50
60
70
H1 2005 H1 20060
0,2
0,4
0,6
0,8
1,0
1,2
Net income EPS
120
233
0
50
100
150
200
250
H1 2005 H1 2006
20
FY 2006 Outlook – as Announced on July 26
€ m
Cash Flow from operating activities Net Income / EPS (underlying)
in €/share€ m € m
- 38% +110%
180
290
0
100
200
300
FY 2005 FY 2006 Outlook
105
51
0,9
1,9
0
40
80
120
FY2005 FY 2006 Outlook0,0
0,5
1,0
1,5
2,0
Net income EPS
€ m+9-10%
+ 25%
2.3502.149
0
1.000
2.000
FY 2005 FY 2006 Outlook
290233
10,8%12,3%
0
100
200
300
400
FY 2005 FY 2006 Outlook0%
5%
10%
15%
Revenues EBITDA adj. (margin)
21
MTU Objective: Sustain and Further Improve Top-Line Performance
Adj. EBITDA (€ m)
2003 2004 2006Outlook
2005
+ 65 %
Revenues (€ m)
2003 2004 2006Outlook
2005
+20 %
176 172
233
290
1.952 1.918
2.1492.350
22
Industry Environment Remains Challenging
1Airlines require advanced technology combined with low emissions and low operational costs
2Increased competition among the airlines and entry of low-cost-carriers
3 Current development of US$/€ and raw material pricing
4Increased engagement of low-cost-countries in aerospace industry
5 Shrinking defence budgets
23
Efficiency Program IMPACT100 has Led to € 310 m Savings
-14%€ 310 m achieved vs. € 275 m target
Cash improvement 2004-2006 Headcount reduction 2002-2006
Efficiency objective was to increase labour productivity, reduce process times and improve supply chain. The restructuring program focused on the reduction of indirect and material costs as well as headcount
*w/o ATENA-Headcount / * Impact 100 2004 -2006
0
20
40
60
80
100
120
2004 2005 2006ETarget Actual
0
2500
5000
7500
10000
2002* 2003* 2004* 2005 Aug 06
24
MTU is now introducing Three Efficiency Initiatives to Further Improve Cost Position
Current Efficiency Initiatives
Reduction of Indirect Cost
Reduction of Procurement Cost
Reduction of Direct Labour Cost
Efficiency programs established as regular process at MTU
25
1. Reduction of Indirect Cost
Headcount MTU Germany
Total German Headcount as of August 2006~ 5.750
Approach:
Reduce indirect cost via two main levers:
• Complexity reduction and process improvement on-site
• Outsourcing / Off-shoring
Project: Reduction of Indirect cost
Operations
Direct2.750 R&D
General
Indirect3.000
26
2. Reduction of Direct Labour Costs
Headcount MTU Germany
Total German Headcount as of August 2006 :~5.750
Project: Reduction of Direct Costs
Indirect3.000
Direct MUC
~1.700
Direct HAN + BER
~1.050
• Focus on Munich Facility
Approach:
• Optimisation of labour hours
• Reduction of overtime compensations
Optimisation of shift models
• Introduction of new tariff system
• Additional efficiency targets
27
3. Reduction of Procurement Costs
MTU Direct Procurement Costs
Total 2005:~€ 750 m
Project: Reduction of Procurement Cost
• Initial Situation:
• 47% of total procurement costs are fixed (OEM spare parts for MRO)
• 53% can be influenced by MTU
• Approach:
• Resourcing / price negotiations with current suppliers
• Supplier development: closer cooperation with current or new suppliers
• New low-cost suppliers
OEM Spares
47%Raw Material
16%
Finished components
24%
Outside Vendor
13%
28
Ambitious Targets Combined with Conservative Accounting
Mid Term Target
EBITDA Margin 14% -15%
R&D fullyexpensed
Gross revenue recognition
(pre concessions)
No Capitalisation of OE losses
Future Technology and R&D Investor and Analyst Day
Dr. Rainer Martens, COO
September, 28th 2006
30
"MTU Fleet" # of Installed Engines***"MTU Fleet" Certification / Entry into Service
MTU Portfolio: Overview and Outlook
until 1980 JT8D J79; TyneCF6-50/80 RB199; T64
1981 - 1990 CF6-80CPW2000; V2500
1991 - 2000 CF6-80E; PW300PW4000G; PW500
2001 - 2010 PW6000 EJ200GP7000 MTR390/EPW307 TP400
Next NGSA* HTH-Engine**Generation … …
13.100
17.100
* Next Generation Single Aisle; **Heavy Transport Helicopter; *** MTU estimates
2000 2005
commercial military
31
LPTLow-
pressureturbine
HPCHigh-
pressurecompressor
MTU‘s Key Competencies
LPCLow-pressurecompressor
HPTHigh-
pressure turbine
Combustor TyneGP7000
TP400TP400
T64/62PW300/500
RB199PW6000
EJ200JT8D
PW6000PW4000
JT8DV2500
PW2000PW2000
Low & High pressure
compressor
Low-pressure turbine
Controls & MonitoringDevelopment and production forRB199, EJ200, MTR390 and TP400
FAN
32
€ 1 bn R&D Effort 2002 - 2006
MTU Portfolio: Extended by Intensive Research & Development
GP 7000
PW6000
PW307
EJ 200
MTR390
TP 400
€ 172 m
€ 189 m
act. 2005 exp. 2006
33
Next Generation Requirements
Emission RequirementsCosts Requirements
Additional Increase of
Flight Safety Reliability Agility/Flexibility of military Applications
Cash Operating Costs-10 - 15 % Noise - 20 - 25%
CO2 - 15 - 20%
NOx - 80 - 85%
Fuel burn- 15 %
Maintenance- 30 %
Manufacturing- 20 - 30 %
34
Cash Operating Costs (US$)
MTU Technology - Fuel Burn Reduction
Materials:LEK94DA 718718plus
3D Flow Control
High Stage Loading
More Electric Engine
Casing Treatment
Active ClearanceControl
588
1428
2100
254
254
383
383
383
254
718
718
718
0,7 1,7 2,5 US$/gal
Fuel Engine Maintenance
Aircraft Maintenance Flight Crew
35
60%
40%
70%
Breakdown Maintenance Costs
Breakdown of Manufacturing Costs
MTU Technology – Engine Cost Reduction (Manufact./Maintenance)
Turbine Blisk/ Blade Clusters
Blisk Design, Manufacture & Repair
Erosion Coating
Engine Condition Monitoring
MIM Vane
Controlsystem
High Lift Blading
Engine
Other
Airframe
Engine
Aircraft
Material
20% Repair
10% Labour
25%
14%
40%
21%
100% 100%
36
MTU Technology – Emissions Reduction (Focus on NOx)
fuel consumption
NOxemission
traffic volume
new generations of enginesRich Lean
Quench Air
RQL (Rich Quench Lean) Combustor
… and all fuel burn reduction technologies
Heat Exchanger
Talon X Burner
37
MTU Technology – Noise Reduction
A 319B 737-200B 727-100
85 db isophones
Optimized Numbers of Airfoils
per Stage
Silencer
3D Airfoil Design
Active Noise Control
Noise-optimized Turbine Design
38
MTU Focus on Next Generation Single Aisle (NGSA) Engine
HP Compressor• Baseline PW6000 and ATFI Compressors• Comprehensive Technology Roadmap• Joint MTU/P&W Design of advanced HPC
LP Turbine• Baseline World Class GP7000 and CLEAN• Rig & Materials Program for Aero-, Cost & Weight
Improvement• support of all ATF and GTF Concepts
Controls & Monitoring • Commercialise military SW & HW• Applied In-Service Monitoring
Experience from EJ200 & MRO
MTU World Class Component Technology Ready for NGSA
39
Continued Development of Various Engine Concepts to Satisfy Future Requirements
Geared turbofan, the high-technology innovative answer also to requirements beyond those immediately forthcoming
Continued development of conventional turbofan to satisfy forthcoming requirements
Advanced Turbofan
Geared Turbofan
Budget in € m 2006
€ 3 m
€ 35 m
GTF only
GTF and ATF
€ 38 m
40
Partnership with Science Partnership in Industry
ATFI
JTDP JCI
JPP
Cooperation with Pratt &Whitney
European projects
Universities / DLR
VOLVO
RR
MTU MaintenanceHannover
MTU
Hannover
.
BerlinTU/DLR/BAMTU
Dresden TU
Cottbus BTU
Köln DLR Kassel Uni GH
Darmstadt TH
Stuttgart Uni/MPA/DLR
Karlsruhe TH
Heidelberg TU
Jülich KFA
Brauns. TU
Göttingen TU
München
TUBw/TU
Aachen TU
DLR
Centers of excellence
SILENCE(R)
Know-how Ensured through our Team and Cooperation
Approx. 780 employees in development and testing at MTU
MRO – MTU Growth Business
Bernd Kessler, President and CEO Commercial MaintenanceSeptember, 28th 2006
42
Highlights 2006
Financials
Growth
New Products
• Sales growth of 33% yoy (H106 vs H105)
• EBITDA Margin increase of 77% yoy (H106 vs H105)
• Contract Wins of US$ 1,2 bn ytd 2006 (Total Contract Value US$ 5,1 bn incl. Zhuhai)
• 20 new customers ytd 2006
• Expansion of MTU Hanover (200 new employees, new test cell)
• Groundbreaking: Expansion MTU Malaysia
• Introduction of CF34-8 and PW500 at MTU Berlin
• Introduction of CFM56-7 at MTU Zhuhai
• New High Tech Repairs (HPT Vanes and Blades: Full and Airfoil Replacement Repairs)
43
World-Wide Commercial MRO Market 2006-2015
Source: AeroStrategy Forecast Initiative 2005; all commercial jet aircraft above 25 seats; 3,1% escalation (MTU adjustment)
5
10
15
20
25
30
35
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
others
PW2000Trent
JT3/4/8/9V2500
CF6
CFM56
CAGR = 6,7%
16
29
Revenues (US$ bn)
V2500
12-280906-MTU AERO ENGINES - INVESTOR AND ANALYST DAY 2006.PPT 44
Source: AeroStrategy Forecast Initiative 2005, escalation 3.1% (MTU adjustment) * All current programs and CF34-10, GP7000, PW6000
MTU Maintenance Market Coverage
Commercial MRO Volume 2005-15: US$ 233 bn MTU Coverage*
e.g. GE90, CF6-6, JT9D
5
7
8
32
51
23
9
14
17
24
19
0,2
0,8
17
Other
PW300
GP7000
CF6-50
PW2000
CF34
JT8D
Trent
RB211
V2500
PW4000
CF6-80C2
CFM56
MTU capabilities
No MTU participation
2005
2015
US$ 14 bn
US$ 29 bn
55%45%
51% 49%
MTU
MTU
6GE90
45
MTU MAINTENANCE
Large Engines
• V2500• CF6• PW2000• CFM56-3
• CFM56-7• CFM56-5
• GP7000• PW6000• GE90• US Military
Small Engines
• PWC engines• CF34-3
• CF34-8• PW500
• CF34-10• PW600• PW307
IGT
• LM2500• LM5000
• LM6000• Parts Repair
• New Product Families
Repair
• Existing repairs
• High Tech Repair 3rd Party
Services
• Enlarge E-Pool
• Accessories
• Asset Management
• Engineering Services
• Trend Analysis
• Condition Monitoring
• CIP Offerings
• E-Pool
Base Business Growth Business New Business
MRO Growth Opportunities
46
Capacity
0
20
40
60
80
100
120
Hannover Berlin Zhuhai Vancouver MalaysiaMaximum Monthly Capacity
Avg. Monthly Utilisation 06
Expansion area at SH (10.000 sqm)
Expansion area at SB (40.000 sqm)
Expansion area at SZ (>40.000 sqm)
New Test cell at SH
New Cleaning and Inspection at SH
Expansion MTU Malaysia
Continuous Improvement Program
Portfolio Optimization
Outsourcing to Low Cost Countries
75%*
90%
40%
50%
90%**
* With new testcell: 63%, ** after expansion: 45%
47
Major Initiatives to Enhance Financial Performance
247
221
187194179173
150158
136133
11,2%10,7%
9,8%
8,9%8,4%8,2%
7,4%7,3%6,7%6,9%
0
50
100
150
200
250
300
Q1-04 Q2-04 Q3-04 Q4-04 Q1-05 Q2-05 Q3-05 Q4-05 Q1-06 Q2-060%
2%
4%
6%
8%
10%
12%[Mio €]
quarterly Sales EBITDA Margin*
Impact 06
Vendor / Material Cost Reduction
Low Cost Opportunities / Offshoring
Integrated Supply Chain Management
Continuous Improvement Program
TAT Reduction Program
SAP Implementation
WOC Optimization
* EBITDA reported
48
Engine MRO Market Growth in China Comments
CAGR = 12,8%
0,6US$ bn
1,0US$ bn
2,0US$ bn
2005 2010 2015
Source: AeroStrategy Forecast Initiative 2005; all commercial jet aircraft above 25 seats; 3,1% escalation (MTU adjustment)
Market Growth in China
• Market Volume more than triples between 2005 and 2015
• Fastest growing region worldwide
• Moderate local competition
49
Benefits Challenges
• Secure leading market share in fastest growing MRO market
• Secure Base workload through JV partner
• Access to further licenses
• Synergies
• Location Advantages:- Low labour cost, skilled labour
- Great infrastructure and proximity to customers
- Zhuhai Free Trade Zone
- Excellent relations to government
• Cross-Culture Management
• Lower Productivity
• Business environment
• Technology Transfer
• 50:50 Joint Venture
Our Presence in China: Benefits and Challenges
50
• Largest domestic airline group• 250 active aircraft• 75 (+50) orders• SkyTeam partner from 2007 on
• China Southern Air Holding includes China Northern and China Xinjang• Xiamen Airlines (60%)• China Postal Airlines (49%)• Sichuan Airlines (39%)
• Partially privatized and listed in security markets in Mainland China, Hong Kong and New York
• 30-40% of Joint Venture workload for next five years1; 30 years exclusive agreement until 2031
1) 40-50% incl. affiliates/participations, 2) Available Seat Miles
Joint Venture Partner China Southern Airlines
Capacity(ASM2, M)
Revenues(US$ bn)
CAGR: 22%
0
20000
40000
60000
80000
100000
2001 2002 2003 2004 2005
0
1
2
3
4
5
51
• Foundation: 2001• Shareholder: MTU Aero Engines 50%;
China Southern Airlines 50%
• Size: Land area 156.000 sqm;Shop area 17.000 sqm
• Investment: totalling US$ 170 m
• Capabilities: V2500-A5 (Market Share 80%); CFM56-3/-5B/-7 (Market Share 30%);standard repairs
• Capacity: 300 shop visits/year
MTU Maintenance Zhuhai at a Glance
6,5%1,4%n/aEBITDA Margin
725116SLU*
71-15EBITDA
104519Revenues
200520042003
Strategic Growth Plan 2015:
Key Figures MTU Zhuhai (100%):
900
590
3700
250
500
750
1000
2005 2010 20150
100
200
300
Workforce SLU*
*) Shop Load Unit
52
MRO Segment Financials (incl. MTU Zhuhai 100%)
13,8%
64,5
468,0
H1 2006 H1 2006€ m
14,0%Gross profit margin
73,0Gross profit
520,4Revenues
IncludingMTU Zhuhai
53
Commercial MRO - Summary
Growth will continue to outpace market
Continuous focus on Cost Productivity
Growth location MTU Zhuhai
• Exceptionally strong growth over the last 2,5 years• Significant new contract wins in 2006, strong Sales Pipeline• Major future growth opportunities• Capacity levels secure growth path and leave room for operational gearing
• Impact 06
• Integrated Supply Chain Management
• Continuous Improvement Program
• SAP Implementation
• Access to fastest growing MRO market worldwide• Extremely well positioned to capture future growth potential• Moderate local competition • No. 1 engine MRO shop in China
54
Cautionary Note Regarding Forward-Looking Statements
Certain of the statements contained herein may be statements of future expectations and other forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Actual results, performance or events may differ materially from those in such statements due to, without limitation, competition from other companies in MTU Aero Engines’ industry and MTU Aero Engines’ ability to retain or increase its market share, the cyclicality of the airline industry, risks related to MTU Aero Engines’ participation in consortia and risk and revenue sharing agreements for new aero engine programs, risks associated with the capital markets, currency exchange rate fluctuations, regulations affecting MTU Aero Engines’ business and MTU Aero Engines’ ability to respond to changes in the regulatory environment, and other factors. Many of these factors may be more likely to occur, or more pronounced, as a result of terrorist activities and their consequences.
MTU Aero Engines assumes no obligation to update any forward-looking statement.